Aerospace & Defense Acquisitions in 2021

NextGen Acquisition Corp. II closed its business combination with Vieco USA, Inc., the parent of Virgin Orbit, and has changed its name to Virgin Orbit Holdings, Inc. The combined company’s common stock and warrants were expected to begin trading on NASDAQ under the symbols VORB and VORBW, following stockholder approval on December 28, 2021.

Joby Aviation has acquired Linz, Austria-based radar systems developer Inras GmbH, bringing a five-person RF engineering team into Joby's R&D organization. The team will remain in Linz and support the development of purpose-built radar systems to expand Joby’s onboard sensing and navigation capabilities as it advances its all-electric air taxi program.

New State Capital Partners has acquired AVEX, a leading North American dealer and maintenance provider for the Daher TBM turboprop, from founder Terry Winson, who is retiring. AVEX — which operates in California and Colorado and provides aircraft sales, maintenance and aftermarket services — will serve as the anchor investment for New State's new aviation platform; terms were not disclosed.

AE Industrial Partners’ portfolio company Triman Industries acquired Brighton Cromwell and Crestwood Technology Group (CTG) to combine the three businesses into a single military aftermarket supply‑chain management platform. The transaction creates a scaled provider of distribution, kitting, logistics, obsolescence management and repair management services serving U.S. and international military customers and OEM partners; shareholders of the targets will retain significant ownership and remain in leadership roles. Terms were not disclosed.

JLL Partners, a middle‑market private equity firm, has acquired LCR Embedded Systems, a Jeffersonville, Pennsylvania designer and manufacturer of rugged enclosures, backplanes and integrated systems for the aerospace and defense market. The sale was completed from LCR’s founder and majority owner, Nissen Isakov, and was announced by advisor Alderman & Company.

Ducommun Incorporated (NYSE: DCO) completed the acquisition of Magnetic Seal Corporation (MagSeal), a Warren, Rhode Island–based maker of proprietary magnetic seals for aerospace and defense applications. The purchase expands Ducommun's engineered products portfolio and recurring aftermarket offerings for critical A&D systems; the deal was financed with cash on hand and a portion of Ducommun's revolving credit facility.

CACI International has completed the acquisition of SA Photonics, a developer of free-space optical (FSO) communications and LiDAR sensing technologies. The deal expands CACI's photonics engineering and scaled manufacturing capabilities — adding facilities in California and Florida — to serve U.S. government, intelligence, and commercial space (LEO) customers.

Avia Solutions Group has entered a strategic partnership with Certares Management LLC, with additional investment from Knighthead Capital Management, providing a €300 million investment. The capital will be used for strategic acquisitions, capital expenditures and general corporate purposes, and Certares will join the group's Board to support global expansion and capability growth.

Exchange Income Corporation (EIC) has acquired Crew Training International, Inc. (CTI), a Memphis-based provider of advanced pilot and sensor-operator training for military and commercial customers. CTI, founded in 1992 and headquartered in Memphis, Tennessee, will expand EIC's aerospace and aviation services capabilities and government training footprint.

Rocket Lab (Nasdaq: RKLB) has acquired SolAero Holdings, Inc., a leading supplier of space solar cells, solar panels and precision aerospace structures, for $80 million in cash. The acquisition (announced in December 2021 and subsequently closed) adds SolAero’s ~425 employees and the world’s largest production line of high-performance space solar cells to Rocket Lab’s vertically integrated space systems business, expanding its manufacturing capabilities for civil, defense and commercial space customers.

Systems Planning and Analysis, Inc. (SPA) has acquired Arena Technologies LLC, a systems-engineering and advisory firm serving the space and national intelligence community. The deal expands SPA’s capabilities and customer access in the space domain and Intelligence Community, supporting SPA’s strategic inorganic growth plans.

Fairbanks Morse Defense (FMD), a portfolio company of Arcline Investment Management, has acquired Welin Lambie Ltd., a U.K.-based designer and manufacturer of davits for launch and recovery of craft. The add-on expands FMD's product and aftermarket service capabilities for naval, coast guard, and commercial marine customers and supports future uncrewed ship program requirements.

SEACORP, LLC acquired Analysis, Design & Diagnostics, Inc. (AD&D) of Jacksonville, Florida, with the transaction closing on December 7, 2021. The acquisition brings AD&D's underwater acoustic sensor, automated detection/classification and advanced data-processing capabilities into SEACORP's naval engineering and electromagnetic systems portfolio; founder Gary Donoher will continue with the company as Director of Southeast Operations.

Inertial Labs has acquired MEMSENSE, a developer of MEMS-based inertial measurement units, combining the two companies' engineering and manufacturing capabilities to accelerate product development for aerospace, defense, autonomous vehicles, and industrial markets. The combined business will have more than 100 employees and roughly 500 customers, and aims to expand production capacity and deliver new high-performance IMU and navigation solutions.

J.F. Lehman & Company completed the acquisition of the assets of the Narda-MITEQ division and the stock of Narda Safety Test Solutions, GmbH (collectively "Narda-MITEQ") from L3Harris Technologies. Narda-MITEQ is a designer and manufacturer of RF and microwave subsystems and components serving defense, space and commercial test markets; the company employs roughly 400 people across facilities in Hauppauge, NY, Pfullingen, Germany and Cisano, Italy. Debt financing was provided by Barings Finance and Siemens Financial Services.

Vertex Aerospace, owned by private equity firm American Industrial Partners, agreed to acquire Raytheon Technologies' Defense Training and Mission Critical Solutions business lines, a group of businesses that generated approximately $1.0 billion in sales in 2020. The transaction (a divestiture by Raytheon Technologies) adds roughly 2,000 employees to Vertex, expands its training, mission-critical support and modernization capabilities, and broadens its government and commercial aerospace contract portfolio.

ADDMAN Engineering, a platform established and backed by private equity firm American Industrial Partners (AIP), has completed the acquisition of Domaille Engineering. Domaille — a Rochester, Minnesota-based manufacturer of mission-critical aerospace & defense components and proprietary fiber optic instruments with additional facilities in Wright City, Missouri and Glen Burnie, Maryland — expands ADDMAN's additive and traditional machining capabilities and geographic footprint. Terms were not disclosed.

Mercury Systems acquired Atlanta Micro, a Norcross, Georgia–based designer and manufacturer of high-performance RF modules and MMICs, to expand its RF and microwave component portfolio and deepen penetration in electronic warfare, radar and weapons markets. The all-cash purchase (subject to working capital and net debt adjustments) is expected to add approximately $16 million in trailing revenue and be immediately accretive to adjusted EPS.

FDH Aero, a PE-backed aerospace and defense distributor, has acquired Unical Defense, a City of Industry, California–based provider of aftermarket component parts and logistics services for military aircraft. The acquisition serves as an add-on to FDH's platform (backed by Audax Private Equity) to accelerate growth in the global defense aftermarket and expand repair-management and supplier capabilities.

BlueHalo, a portfolio company of Arlington Capital Partners, has acquired Asymmetrik Ltd., a developer of OSINT and intelligence-focused software tools. The deal expands BlueHalo's cyber and SIGINT capabilities by adding Asymmetrik's OSINT, AI/ML, blockchain analytics and real-time streaming analytics expertise and team (120+ employees) headquartered in Annapolis Junction, Maryland.

ARCH Precision Components, a Madison Dearborn Partners portfolio company, has acquired Metalcraft Technologies Inv., LLC (MTI) of Cedar City, Utah as an add-on to expand ARCH's aerospace and defense manufacturing footprint. MTI, a 30+-year sheet metal fabrication and aircraft-components manufacturer operating roughly 150,000 sq. ft. across two facilities, brings additional sheet-metal fabrication, machining and surface-treatment capabilities to the ARCH platform.

Rocket Lab USA, Inc. (Nasdaq: RKLB) completed the acquisition of Planetary Systems Corporation (PSC), a Maryland-based spacecraft separation systems and satellite dispenser manufacturer, for $42 million in cash plus 1,720,841 shares of common stock and a potential earnout of up to 956,023 additional shares. The deal (expected/closed in Q4 2021 per announcements) brings PSC's flight-proven separation hardware and its 25-person team into Rocket Lab's Space Systems division to expand Rocket Lab's end-to-end launch, spacecraft, and space-hardware capabilities.

The Carlyle Group and Stellex Capital Management have acquired IMIA Group Holdings from J.F. Lehman & Company. IMIA, headquartered in Spanish Fort, Alabama, is a leading provider of multi-disciplined marine preservation, scaffolding, environmental containment and staffing services for U.S. Navy MRO and new construction, with a workforce of over 1,500 employees.

BlueHalo, a portfolio company of Arlington Capital Partners, has acquired Citadel Defense, a San Diego-based developer of AI/ML-powered counter‑unmanned aerial systems (cUAS). The acquisition adds Citadel's autonomous detection, tracking and neutralization capabilities to BlueHalo's directed-energy and layered perimeter defense portfolio to accelerate fielding of multi-modal cUAS solutions for defense, government and commercial customers.

Trive Capital-backed Vitesse Systems has acquired Sterling Precision, Inc., a Clinton, Massachusetts manufacturer of dip-brazed assemblies, cold plates and waveguides. The add-on expands Vitesse's thermal management and precision waveguide manufacturing capabilities to better serve aerospace, radar and electronic warfare customers.

Technology Service Corporation (TSC), an employee‑owned high-technology engineering company, has acquired Praxis Products, a provider of SIGINT and wireless solutions (FASTRAK) for defense and law enforcement customers. The acquisition expands TSC’s mission-critical hardware and software capabilities for federal and international customers; Chesapeake Corporate Advisors acted as exclusive financial advisor to Praxis Products.

AerCap Holdings N.V. completed its acquisition of GE Capital Aviation Services (GECAS) from General Electric, creating the largest aircraft leasing company by scale across aircraft, engines and helicopters. Under the deal GE received cash, AerCap shares and notes, and AerCap expands its fleet, customers and global market position.

JW Hill Capital, a Scottsdale-based private equity firm, acquired Performance Plastics, Inc. (San Diego, CA) and Angeles Composites Technologies, Inc. (Port Angeles, WA) from Avantus Aerospace. The transactions expand JW Hill Capital’s aerospace manufacturing portfolio into precision composite aerostructures serving commercial and military OEMs and tier-one suppliers.

Los Angeles-based private equity firm Vance Street Capital acquired McFarlane Aviation, a Baldwin City, Kansas manufacturer and distributor of FAA-PMA aftermarket parts for general aviation. The McFarlane family will retain a meaningful ownership stake alongside Vance Street as the firm positions McFarlane as a platform investment to accelerate growth in the aerospace aftermarket.

Leading Edge Avionics has acquired Advantage Avionics (Chino) to create the largest avionics support network in Southern California. The deal expands Leading Edge’s service footprint by adding coverage at roughly 30 additional airports and combines capabilities and mobile AOG services while preserving ongoing installs and customer service continuity.

FDH Aero, a distributor of aerospace parts and an Audax Private Equity portfolio company, has acquired Stealth Aerospace, a Southern California-based stocking distributor of aerospace electrical and electro-mechanical components. The add-on strengthens FDH's position in the U.S. commercial and cargo aerospace aftermarket and expands its global aftermarket channel and AOG support capabilities.

Emko Capital, a family-run lower middle market private equity firm, has acquired a family-owned confidential defense aerospace parts manufacturer that has been in business for over 40 years and is a Tier 1 supplier to large aerospace & defense OEMs. Emko said it will retain staff, continue serving military customers, and pursue organic growth and bolt-on acquisitions to grow the business.

GenNx360 Capital Partners portfolio company AeroRepair Corp has acquired Landmerk Inc., an FAA/EASA-certified aircraft wheel and brake repair station based in South Miami, Florida. The deal is AeroRepair's second add-on since GenNx360's 2019 investment and expands the platform's wheels-and-brakes MRO footprint and 24/7 AOG capabilities in South Florida.

Rocket Lab USA, Inc. completed the acquisition of Advanced Solutions, Inc. (ASI), a Colorado-based aerospace engineering firm specializing in flight software, mission simulation, and GNC, for $40 million plus up to $5.5 million of performance-based earnouts. The deal expands Rocket Lab's Space Systems capabilities and integrates ASI's proven flight software and GNC expertise into Rocket Lab's Photon and broader spacecraft offerings.

Arcline Investment Management, a growth-oriented private equity firm, has acquired Onboard Systems International from Liberty Hall Capital Partners. The acquisition expands Arcline's portfolio in mission-critical electromechanical systems for aerospace and defense, adding a designer, manufacturer, and servicer of external cargo equipment for military and civil helicopters headquartered in Vancouver, Washington.

Maury Microwave, the RF & Microwave Test & Measurement platform backed by Artemis Capital Partners, has acquired dBmCorp, a specialist in wireless link emulation and SATCOM test equipment. The add-on purchase expands Maury’s test & measurement capabilities and aims to accelerate product development and broaden the combined company's reach in satellite and wireless communications markets.

Arlington Capital Partners completed the acquisition of L3Harris Technologies' Electron Devices and Narda Microwave-West divisions and has established the business as Stellant Systems, a standalone platform focused on mission-critical defense and space electronics. The company, led by CEO Paul Russell, designs and manufactures RF amplification products (including traveling wave tubes and microwave power modules) and employs over 800 people across facilities in Torrance, California; Williamsport, Pennsylvania; and Folsom, California.

Capital For Business, Inc. (CFB) completed an investment in Advanced Industries, LLC, a Missouri-based manufacturer and Department of Defense contractor. CFB provided subordinated debt and equity alongside Konza Valley Capital, Inc. and the Advanced Industries management team to support the company’s manufacturing capabilities and growth.

CAES has acquired Colorado Engineering, Inc. (CEI), a Colorado Springs-based provider of RF and high-performance computing (HPC) solutions, to broaden CAES' digital systems engineering and manufacturing capabilities. The acquisition combines CAES' RF, microwave and manufacturing expertise with CEI's digital systems, radar, communications and AI/ML capabilities to better serve defense and commercial customers.

Ontic has purchased the Staverton facility and licensed certain legacy product lines from Triumph Group, expanding its UK manufacturing and aftermarket capabilities. The deal transfers the existing facility, select product lines and more than 90 employees to Ontic to support military, civil and marine platforms.

Crestview Aerospace, a portfolio company of American Industrial Partners, has acquired Kemco Aerospace Manufacturing, a St. Louis-based precision machining and aerospace components manufacturer. KAL Capital Markets acted as sell-side advisor to Kemco in the transaction, which adds machining capacity and defense/aerospace manufacturing capabilities to the Crestview platform.

Rolls‑Royce has signed a definitive agreement to sell 100% of ITP Aero to a Bain Capital Private Equity‑led consortium, including Spanish co‑investors SAPA and JB Capital, for approximately €1.7 billion. The sale is part of Rolls‑Royce’s disposal programme to raise proceeds and will position ITP Aero as an independent, growth‑focused aerospace supplier headquartered in the Basque Country, Spain; the transaction is expected to close in H1 2022 subject to regulatory approvals.

Mercury Systems, Inc. signed a definitive agreement to acquire Avalex Technologies Corporation, a Gulf Breeze, Florida-based provider of mission-critical avionics (rugged displays, communications management, digital video recorders, and warning systems). The all-cash asset purchase (subject to customary adjustments) is expected to be funded with cash on hand and the company's revolving credit facility; Avalex generated approximately $40 million of revenue for the year ended December 31, 2022 with ~25% adjusted EBITDA margins and the deal was expected to close in Mercury's fiscal Q2 2022 (subject to HSR clearance).

Karman Missile & Space Systems, a platform backed by Trive Capital, has acquired Systima Technologies to expand its capabilities across the space, missile and hypersonic supply chains. The Systima leadership team will remain as equity holders and senior leaders of Karman; the deal is an add-on to the Karman platform to broaden engineering, composite-structure and energetic systems capabilities.

Karman Missile & Space Systems, a Trive Capital-backed platform, has acquired TMX Engineering, a Los Angeles-based precision machining firm. The deal expands Karman's capacity and capabilities in complex precision machining for space, missile, and hypersonic systems; TMX's senior leadership will remain as equity holders.

Dover Corporation has completed the acquisition of The Espy Corporation, a developer and manufacturer of radio frequency (RF) signal intelligence (SIGINT) systems and integrated software. Espy will join Dover’s Microwave Products Group within the Engineered Products segment to expand Dover’s RF sensing, geolocation and machine‑learning capabilities for defense and other markets.

Raytheon Technologies, through its Raytheon Intelligence & Space business, signed a definitive agreement to acquire SEAKR Engineering, a Colorado-based supplier of space-qualified electronics. SEAKR will become a wholly-owned subsidiary reporting into Raytheon Intelligence & Space; the deal expands Raytheon's space electronics capabilities and product portfolio.

UAV Factory, a portfolio company of private equity firm AE Industrial Partners, has acquired Jennings Aeronautics (JAI) and will combine JAI's SUAS capabilities with UAV Factory's tactical UAV and ISR platform. The deal expands AEI's unmanned and autonomous platform by adding JAI's engineering, manufacturing and autonomous flight-control expertise; terms were not disclosed.

Fairbanks Morse Defense, a portfolio company of Arcline Investment Management, has acquired Hunt Valve Company, Inc. from May River Capital. The acquisition — which includes Hunt Valve Actuator Division, MB Valve (Montreal Bronze) and Pima Valve, LLC — expands FMD's naval valve and electromechanical actuator manufacturing and aftermarket capabilities to better serve U.S. and Canadian naval and shipyard customers.

CMI Group, a Gallant Capital Partners-backed aerospace components manufacturer, has acquired Systems 3, a Phoenix-based maker of flight‑critical precision parts for rotary‑wing and other aerospace OEMs. The deal (financed by Monroe Capital) expands CMI’s scale and technical capabilities, positioning it as a leading A&D-focused manufacturer of precision components and assemblies in the Southwest.